We have been hearing comments on the codename of the new version of Windows Phone: Tango (a successor to the Mango?). This is speculated to arrive before the Windows Phone 8 Apollo releases.

The new OS is supposed to pack a few tricks and treats and would, allegedly, be Nokia’s partner in focusing on low priced Windows Phones. This would mean their aim would be to largely target the Asian markets.

There were widespread rumors that the Tango and the Sea Ray of Nokia’s were one and the same. But clarifications were issued claiming that the Tango is an OS update while the Sea Ray will be a handset running Mango that would probably release later this year.

Tango might not, after all, be a major release, as we heard news that the Windows Phone team is seemingly thinking of a ‘major Operating System update’ delivery every year. And we know that the Apollo is set to be released sometime later next year.

The Microsoft executives were also heard saying that they will be following a new nomenclature system for now, whereby Windows Phone OS code names end in the letter “O”. Guess that’s how they ended up with Tango, Mango, Apollo etc.

The Tango might be harbored by less expensive sets, given that the OS will be looking to go low budget. So we might get to see Windows Phone striding a two-tiered platform.

But that’s a whole lot of assumptions, and we still need more news (or rumors) to swing on.